1 Internet of Things IndustrializationMarius Popescu Sales Manager, Nokia ASTEL 2017 Sofia, April 11, 2017

2 Agenda The IoT Market IoT Components Key Elements of Nokia’s OfferSummary

3 While the past has been about connecting people, the future is about connecting things – improving personal life, optimizing business processes The programmable world improves people's lives through automation, enhanced connectivity and intelligence. It also helps industries to become more efficient, agile and real-time. Connected things Programmable things Many things 2 3 1 Fixed internet with 1 bn places connected by 2005 Mobile internet with 5 bn people connected by 2020 Programmable World with 50 bn things connected by 2025

4 The Internet of Things represents a paradigm shift that…< 5 Billion connected people Data meaningful in context From product… 50 Billion connected “things” Data disassociated from any source …to everything delivered as a Service Today 2025

5 Side note: the unbearable lightness of IoT forecasting“Installed”, “connected” or “active” IoT devices in 2020 20.8 Bln 26 Bln 27 Bln 27.9 Bln 29.5 Bln 38 Bln 40.9 Bln 50.1 Bln Here’s a side note, however… Always be cautious when citing these big numbers, particularly when you’re using them to build or justify a business case. There’s a huge variation in the forecasted numbers of connected devices and IoT revenues. That’s shouldn't be a real surprise. Just think of the different definitions for the Internet of Things that I listed earlier in this presentation. And combine this with the huge diversity in devices on the market. And with the extending range of application domains. Does it really make sense put an Apple watch, a smart parking meter, and a self-driving mining truck in the same IoT bucket? I have even seen some reports that were counting RFID tags as connected objects. As a conclusion, don’t rely too much on analyst numbers. The IoT opportunity is going to be huge, but today nobody knows how big it will be.

6 IoT Why now? HW miniaturization & cost reductionStartup culture enables disruptive innovation Proliferation of wireless networks, devices & endpoints Business case for industrial automation IoT Growth of cloud storage and processing capabilities & resources Social, economic, environmental, and lifestyle stimuli Futurists have been talking about smart cars and intelligent buildings for many years, but it’s only very recently that the various technologies have come together to deliver affordable and scalable products and services. Decreasing hardware costs and ubiquitous mobile access are enabling smarter endpoints and seamless connectivity. Adding a few sensor chips or a wireless connectivity module to a new product or device is not going to raise its price dramatically. The proliferation of these mobile devices and M2M endpoints is creating a whole range of opportunities for new applications. They constitute the foundation of sensor networks that enable monitoring and remote control of daily life objects at home, in the city, in your car, at the office, etc. Many IoT services will be deployed in the cloud. Thanks to the availability of high-capacity networks, low-cost computers and storage devices as well as the widespread adoption of virtualization, service providers can flexibly scale up resources as demand for new services increases. The current wave of digital disruption is driven by many often small companies. Nurturing a startup culture enables disruptive innovation. This is one of the reasons why Nokia has launched a 350 Million dollar IoT investment fund. For enterprises, the primary business case for IoT is internally focused. Namely improved efficiencies, cost savings and enhanced asset utilization. Combined with the benefits of enhancing customer experience or increasing revenue, the so called Industrial IoT is a key driver for IoT deployment. And finally, there is a broad spectrum of stimuli in the social, economic, environmental and lifestyle domains. Internet of Things offers a means to develop services that enhance people’s everyday life by making technology more human.

7 Attractive business models and a myriad of use cases will expand the human possibilitiesOf fatalities in car accidents are due to human error and slow reaction, majority to be avoided by 100% reliable connectivity and assisted driving Of the 355 billion gallons of water used by Americans daily are wasted due to leakages Fatalities each year worldwide by not following doctor’s prescriptions – addressable by assisted living / patient monitoring 20% 1 million Estimated energy waste in US buildings due to inefficient and outdated HVAC systems Additional economic benefits for governments by leveraging Smart City applications 90% 50% 50 billion € Reducing wastage, e.g. in water supply networks: Americans use 355 billion gallons of water each day, 20% of which is just wasted due to different sources of leakage. This is the equivalent of the combined water usage by California, Texas and Ohio – and this could all be saved through the implementation of effective IoT sensor networks and monitoring technologies. Assisted living applications preventing avoidable fatalities: Each year a million people die worldwide because of not properly following doctors’ prescriptions. This is also the reason of 10% of total hospitalizations, creating 0.5 to 1 trillion USD annual costs globally. Radically reducing car fatalities: 90% of the fatalities in car accidents are due to human error and slow reaction. By combining ubiquitous, 100% reliable connectivity across all streets and motorways with low-latency mobile edge computing, high-definition maps, real time warning systems and automated breaking, the lion share of these fatal accidents could be avoided. Public

8 IoT value predictions vary significantly by sourceRevenue is reported in billions while global economic impact measured in trillions 2018: ABI Research predicts worldwide IoT potential to be revenue $149Bn 2019: Business Insider predicts the total software and services market will be $600Bn 2020: IC Insights estimates the IoT in manufacturing market to be worth $13.5Bn 2021: Intel has sized the building automation systems market to be $101Bn Revenue Potential 2018: Microsoft sales expenditure for IoT in manufacturing is set to grow to $913Bn 2019: IDC Research estimates the worldwide spending on IoT will reach $1.3Tr 2022: Cisco predicts the IoT market will be $14.4Tr in total, with $1.95Tr from smart factories 2025: McKinsey estimates the economic impact of IoT to be between $3.9Tr to $11.1Tr Economic Impact Number of Connected Devices 2019: IC Insights predicts the number of new IoT connections will reach 3.1Bn a year 2020: IDC predicts the number of IoT units will reach 28.1Bn, with a growth rate of 17.5% 2020: The World Economic Forum projects the number of connected devices will hit 50.1Bn Source: https://www.enterpriseirregulars.com/104084/roundup-internet-things-forecasts-market-estimates-2015/ https://www.enterpriseirregulars.com/104084/roundup-internet-things-forecasts-market-estimates-2015/

9 Agenda The IoT Market IoT Components Key Elements of Nokia’s OfferSummary

10 The explosion of possibilities and use cases is creating a huge market opportunity in the entire Internet of Things ecosystem >€100B or >50% CAGR >€10B or >30% CAGR 2025 market projection in € Mobility Industries Utilities Digital Health Smart Homes Retail & Services Public Safety Smart City IT Applications, Analytics and End-User Services 203B 110B 31B 23B 19B 18B 18B 6B 6B 434B (90%) Application Enablement Platform 11B 3B 5B 2B 2B 0.6B 0.3B 3B 0.3B 28B (6%) Connectivity Management Platform 2B 0.4B 0.8B 0.3B 0.2B 0.1B 0.04B 0.04B 0.002B 4B (1%) Cellular Connectivity 6B 0.04B 0.02B 0.08B 0.01B 0.7B 0.7B 0.4B 0.01B 8B (2%) IoT modules 2B 2B 1B 0.6B 2B 3B 0.1B 0.3B 0.4B 9B (2%) 224B (46%) 117B (24%) 39B (8%) 26B (5%) 24B (5%) 19B (4%) 19B (4%) 10B (2%) 7B (1%) Source: Machina Research and Nokia Strategy 484B What is the Internet of Things, how can it be structured and where does the business opportunity lie? Horizontal structure: Different layers Vertical structure: Different industries Connectivity layer: We are present already; LTE-M, perspectively 5G, but also local connectivity solutions and LPWA technologies Platform play: CMP and AEP: We are engaging with partners But as you can see, the material value in the play – both for you and also for us – is in the applications, analytics, and end user services…

11 IoT: Developing new Digital revenue streams Focus on growth beyond connectivity2012: 2025: Total software and services market: €61Bn Total software and services market: €455Bn IoT Connectivity €9Bn IoT Connectivity €11Bn IoT Value-added services €27-45Bn IoT Value-added services €436Bn Hardware €1.25Bn Hardware €8Bn Based on figures from ABI Research, Machina Research and Nokia This forecast does not include broad devices such as consumer electronics

12 establishing offeringPlayers from different industries have positioned themselves in the emerging ecosystem of the Internet of Things Mobility Industries Utilities Digital Health Smart Homes Retail & Services Public Safety Smart Cities IT Applications, Analytics & End- User Services Pure horizontal AEP platform play: Application Enablement Platform Pure horizontal CMP platform play: establishing offering Connectivity Management Platform Connectivity play: Connectivity Special purpose connectivity service players IoT modules Module play:

13 IoT LPWA1 technology spaceSIGFOX LoRa NB IoT (NB LTE) eMTC (LTE-M) EC-GSM Rel. 13 5G (targets) Range MCL <12km 160 dB < 10km 157 dB <15km 164 dB 156 dB < 15km Spectrum Bandwidth Unlicensed 900MHz 100Hz <500kHz Licensed 7-900MHz 200 kHz shared shared 8-900MHz Data rate <100bps <10 kbps <200 kbps < 1 Mbps 10kbps Battery life 10+ years Use case Smart Grid/City/ Monitoring Smart Grid / City/ Monitoring Sm. Grid / City / Monitor./ vehic Sm. Grid / City / Monitor./ vehic. Module cost 4.00$ (2015) 2.64$ (2020) 4$ (2015) 2-3$ (2020) 5.00$ (2015) 3.30$ (2020) 4.5$ (2015) 2.97$ (2020) <$2 Nokia focus on best interworking with legacy networks 1 LPWA: Low-power wide-area

14 Why LTE-based cellular technology?Where would mobile data monetization be in 2017, if mobile broadband evolution had stopped in 2007? 3GPP ensures continues evolution From HSPA to LTE-Advanced Pro From Cat.1 to Cat.M1, Cat.NB1 and beyond What is the benefit of 10years battery autonomy of the device, if the serving network isn’t around anymore in 2027? NB-IoT and eMTC work on 4G networks, which have the largest subscriber base as of 2020 NB-IoT agreed as 5G baseline for IoT connecitvity

15 Slim Radio ensures low cost & power for massive IoTPower saving Longer sleeping cycles* Less signaling for wakeup Power Save Mode eDRX >10 years Battery life with two AA batteries Very low device cost Better coverage compared to current LTE Repetition and power spectral density boosts Improved indoor coverage Unlock new use cases Smaller technical and economic entry barriers Simplified modems Narrowband transmission Reduced transmit power Limited downlink transmission modes UE processing relaxations eMTC: +15 dB, 7x area coverage NB-IoT: +20 dB, 7x area coverage 10,000 x >10 Gbps 100 Mbps <1 ms x x ultra low ultra low 10 years 10 years *) Extended Discontinuous Reception (DRX)

16 Overlay Core for IoT servicesTrigger points to deploy overlay IoT Core Network: Extreme IoT subscription growth cloud evolution drive IoT business vertical with lowest possible TCO Combined Core IoT Core MBB Core Existing Core Networks supporting both MBB and IoT verticals Existing Core for MBB vertical Overlay Connectivity Network for IoT Cloud ready Core solution provides flexibility to start overlay deployment and helps operator to build cost-effective Core Network for IoT deployment Operational efficiency improvement with cloud deployment ranges from 21%-38% IoT specific optimization in overlay deployment to drive TCO down, which may not be valid for MBB subscription Trigger points to deploy Overlay IoT Core Network: IoT global subscription growth 20-30% year on year. In future, IoT expected to exceeded MBB subscription Operators are exploring several use cases for cloud evolution. VoLTE and IoT are among Top 3 use cases for cloud deployment Operator wants to drive IoT business vertical with lowest possible TCO and without impacting existing high ARPU Mobile broadband services Cloud ready Core solution provides flexibility to start overlay deployment and helps operator to build cost-effective Core Network for IoT deployment Operational efficiency improvement with cloud deployment ranges from 21%- 38% M2M specific optimization in overlay deployment to drive TCO down, which may not be valid for MBB subscription

17 IoT Security imperative is handled at multiple levelsSecure the endpoint and control Manage endpoints (sensors) to establish trust Industry best practices: 2-way authentication Signed software delivery from trusted source to ensure authenticity Certificates, keys, encryption Analyze Traffic pattern & Detect anomalies using Analytics Secure operations Workflow & Authorization workflow Multifactor authentication Text & video logging Activity monitoring & session termination Connected devices analyze inform Data Link Device Management Link IOT applications OAMP NetGuard Endpoint Security NetGuard Identity Access Manager Secured IoT platform

18 The Internet of (hacked) Things on the riseAs we connect more devices, and create more value from the generated data, the risk for abuse, and security breaches goes up October 2014 Millions of smart meters in Spain compromised February 2015 2.2 million BMWs impacted July 2015 1.4 million Chryslers recalled July 24th 2015 Security is key. IDC said at OOW on 10/27 : You are one mistake away from national headlines….

19 To fully capitalize the Internet of Things opportunity, five main challenges have to be addressedRobust connectivity: Latency, availability, coverage Standardization: Standard connectivity for billions of things Interoperability and open interfaces: Enabling platforms to talk with each other Privacy and security: Prevent malware injection and data misuse 1 2 3 4 Domain knowledge: Deep, vertical-specific insights 5

20 Agenda The IoT Market IoT Components Key Elements of Nokia’s OfferSummary

21 Nokia aspires to shape the programmable world with IoT-optimized networks and applications in selected verticals  Applications Build E2E competence for IoT business in selected verticals with global SI capabilities and develop IoT ecosystem program ngConnect ecosystem program for e2e vertical apps and analytics Platforms Connectivity management, application enablement, IoT device management Build value add with Nokia IoT platform solutions pre-integrated with Nokia Core Connectivity Build on Nokia key competence in standardized, globally available connectivity solution with key differentiators like MEC, Airframe or Security Cellular for IoT (NB-IoT, eMTC, EC GSM), short-range, fixed access, MEC¹, IoT optimized Core and Security 1. MEC: Mobile Edge Computing

22 A horizontal multi-tenancy approach enables IoT mass adoptionSmart Cities Connected Cars Connected Utilities Public Safety Health, Home IoT Platform (IMPACT) Smart Cities Connected Cars Connected Utilities Public Safety Health, Home v v v v v v v v v v Point solutions are limited due to: High cost for integration Expensive duplication of effort Underutilized resources Disparate security standards Lacking economies of scale Horizontal approach drives adoption by: Promoting best practices by leveraging end-to-end security and scalability Streamlining operations to reduce costs Monetize IoT by expanding offerings through modular and flexible mix-and-match architecture Why do we then need these platforms? When thinking of any IoT use case, there are thousands of businesses and millions of connected devices. This kind of complexity cannot be managed manually. New systems and platforms are required to manage all the IoT objects communicating in the network and also to ensure cost control for lower ARPU in IoT. With Nokia Connectivity solutions and connectivity management platform (CMP), the rapidly growing number of devices can be centrally and easily managed and monitored. This makes IoT solutions more efficient. Application enablement platform is the tool for efficient application creation. With AEP, operator can lower the costs and reduce the risks involved in developing and deploying IoT solutions. in addition, device management is needed to protect the network, secure existing revenue streams, and deliver business intelligence. Unlike “smart” phones; actuators, sensors, meters, and video modules are fairly simple, unmanned devices that require management. The need for management at this network level is compounded by the complexity of the ecosystem, the variety of use cases, and the magnitude of projected volumes associated with the Internet of Things

23 Nokia IoT Platform - IMPACTHosted Applications on an Application Development & Execution Platform with corresponding analytics (cloud and distributed via Mobile Edge Compute) Monetize data & event collection, storage, Analytics Applications Location, Fault management, Enterprise mgmt ADEP IoT Platform (IMPACT) Data Collection & processing Security Manage Devices device discovery, OTA upgrades, Configuration Management Plane (CDP) Connectivity Mgmt (CMP) Manage Service SIM Subscription, Provisioning, Rate Plans, Charging ,eSIM, Enterprise Mgmt CMP helps operators manage the exploding number of connections from sensors and devices, especially when they use SIM connections. The platform offers flexible deployment options and selectable modules like billing, mediation and CRM. It also includes reporting, monitoring, multiple triggers, adjustable rates and diagnostic tools, all with customizable user interfaces. CMP makes IoT solutions more efficient as it enables full control over all connected devices, connections, subscriptions and costs. It also brings real-time visibility into device performance and traffic patterns. Greater operational efficiency, higher automation and lower cost can be achieved also by making use of intelligent alerts and alarms. CMP supports also many levels of IoT business with multi-tenant customizable user interfaces, several hierarchical levels and enabling automation of the business processes between the operator and enterprises. For enterprises it provides a self-service portal where they can manage their own SIMs, have full visibility of the device behavior, and find troubleshooting services. To put it in short: CMP provides operators automation of the IoT SIM business enhancing efficiency and creating additional value.

24 Nokia Connectivity Management Platform (CMP)CRM SIM & Subscription Management Product Catalogue Charging, Rating & Billing Self Care portal Statistics, dashboards CMP helps operators manage the exploding number of connections from sensors and devices, especially when they use SIM connections. The platform offers flexible deployment options and selectable modules. CMP helps operators manage the exploding number of connections from sensors and devices, especially when they use SIM connections. The platform offers flexible deployment options and selectable modules like billing, mediation and CRM. It also includes reporting, monitoring, multiple triggers, adjustable rates and diagnostic tools, all with customizable user interfaces. CMP makes IoT solutions more efficient as it enables full control over all connected devices, connections, subscriptions and costs. It also brings real-time visibility into device performance and traffic patterns. Greater operational efficiency, higher automation and lower cost can be achieved also by making use of intelligent alerts and alarms. CMP supports also many levels of IoT business with multi-tenant customizable user interfaces, several hierarchical levels and enabling automation of the business processes between the operator and enterprises. For enterprises it provides a self-service portal where they can manage their own SIMs, have full visibility of the device behavior, and find troubleshooting services. To put it in short: CMP provides operators automation of the IoT SIM business enhancing efficiency and creating additional value. Public

25 IMPACT Connected Device Platform (CDP) module Proven scalability for critical IoT applicationsCombination of Nokia Motive and Mformation offers customers a comprehensive, secure and cross-industry platform for the IoT-optimized network ~800 17% 18% million managed devices across home, mobile and enterprise networks fixed device management market share mobile device management market share 1B€ +1 savings for our top 10 customers firmly places Alcatel-Lucent in device management across home, mobile and enterprise networks with over customers +10 Billion connected devices need to be managed – that is an average of 1.7 devices for every person on the planet

26 Nokia Application Development and Enablement Platform (ADEP)Data collection and processing (location, events, environment) Tenant management Device Inventory and management AAA Tools for application development Nokia Application Development and Enablement Platform (ADEP) lets operators create customized IoT applications and services fast and cost-effectively with proven building blocks. The platform makes it easier to handle the complexity of these applications including managing devices, networks and systems. Application enablement platform consist of several functionalities from several parts of Nokia. These include Motive analytics platform, IMPACT platform for application enablement and device management from A&A and application enablement functions from AMS. Within Nokia, we can offer full end to end solution defined for each customer based on their specific needs. Application enablement capabilities let operators create customized IoT applications and services quickly and cost-effectively. The platform makes it easier to handle the complexity of these applications including managing devices, networks and systems. It is also designed for horizontal scalability allowing for streamlined operations, economies of scale. For application developers, AEP provides fast application development. It ensures reliable enterprise applications for IoT, and enable applications for multi-vendor devices. It also gives developers access to many ready-made applications. Furthermore, Application Enablement reduces mobile network resource use with smart agents.

27 IMPACT Highlights Multi-tenant, Multi -protocol, Standards-based(Radio) Connectivity agnostic Optional SCEF node function in case PaCo not NB-IoT ready ADEP agnostic / Simplifies vertical IoT application development Data Collection and Event Steam Processing; Fault Management, Policies, Alerts, Trends Prediction Horizontal Scalable, Edge & Cloud Gateway Security: Anomaly detection, Malware detection Device Management: firmware & software update, reset/reboot, configuration control commands, device discovery  Multiple Deployment Models: Cloud/SaaS, On-premise Rich APIs for integration (northbound & southbound) Industry leading Device certification References: Schneider, Verizon, ATT digital life, Bell

28 NetGuard Endpoint Security – product overview14 patents Network-based malware detection in fixed and mobile networks Threats Network-based malware protection NetGuard Endpoint Security FIXED & MOBILE MALWARE GROWS Android and iOS infections raising, 20% of laptops infected DETECTION Network-based sensors detect malicious traffic originating from any subscriber device (Nokia DB, heuristics, IoT profile deviation) Security Insight Analytics and Self-care Automated Actions Alert and Fix IoT IS ALREADY TARGETED Several attacks, from security cameras to connected cars INSIGHT Awareness about all infected subscribers allows to take the right countermeasures Threat Intelligence Labs DB Correlation of traffic patterns CYBERCRIME IS A BIG BUSINESS Professional and funded Same revenue as drug trade Enterprise Mobile and Fixed ACTIONS: ALERT & FIX Alert the subscribers and assist them in removing the threats, e.g. blocking traffic or triggering updates (IoT) EXISTING SOLUTIONS OBSOLETE Weak detection rate Too many clients to manage Residential No SW on end user devices Smartphones, PCs, IoT All subscribers, mobile/fixed Individual subs. remediation NetGuard Endpoint Security is a subscriber protection system that works on top of a telco network. It has an analytics engine that “listens” and “analyzes” the traffic for MBB or fixed networks (e.g. on a 3G network, it gets a copy of the Gn traffic), SMS (it’s integrated with an SMSC and can monitor the “premium SMS”) and premium voice – and searches for patterns that are consistent with malware behavior. The information on known malware behavior comes from the Nokia Threat Intelligence Labs, and leverages network-validate communications-based signatures for optimal effectiveness and efficiency.  The NTIL also leverages Nokia’s ecosystem relationships with F-Secure, Kaspersky and other partners in the security community.  NetGuard Endpoint Security also has a machine learning capability that is able to detect suspicious patterns, even if they are not yet included in the malware DB. NetGuard Endpoint Security has three key deliverables: The Security Insight dashboard gives the operator a view into the status of the malware on its network. The real-time dashboard shows which were the most relevant malwares e.g. in the last minute or hours, as well as the most affected locations, device types, IP destinations. It also shows the “malware” events (each time that a malware activity is detected) and various statistics such as who are the infected subscribers, which are the key premium SMS malwares, etc. The second deliverable is the interfaces that enable the carrier to optimize the value of the security intelligence: Network interfaces: SIEM WNG PCRF Firewall (IP Blacklist) Customer Care software integrations The third deliverable is the turnkey, subscriber-facing malware remediation service, which supports the full detect-alert-fix cycle.  This provides notification to the subscriber for malware, subscriber-facing carrier-branded portal to support malware remediation, and Android mobile app and Android and iOS sdk for inclusion in the carrier mobile app. What makes NetGuard Endpoint Security different from the other products in the market is: The deep mobile network view that allows the access to specific data like IMSI, MSISDN or Cell-ID The possibility to look at the internal traffic of a mobile network and not only at the traffic from and towards the internet The possibility to protect not only against traditional malware but also against new variants and premium SMS fraud A scalability that allow the operator to monitor the entire network with limited hardware Complementary to existing legacy perimeter security devices and systems.  They are the lock, NGES is the burglar alarm. The combination of: Scalability Capability to look at internal traffic Access to specific Mobile and fixed Network parameters And the fact it doesn’t require any client on the end-user side Report anomalies on IoT device communications make MG the ideal product in case of M2M protection Monitoring network traffic from 100+ million devices

29 A comprehensive approach to secure connected mobilityOur solution: combining Impact and NetGuard App Nokia applications, partner applications, 3rd party applications Manage endpoints to establish trust Using industry best practices (2-way authentication; signed software delivery from trusted source to ensure authenticity; certificates; keys; encryption) NetGuard Certificate Manager NetGuard Endpoint Security IoT Platform inform 1 Device management link Endpoint profiling Alert and mitigate any deviation analyze Data link Analyze traffic pattern and detect anomalies using analytics 3 2 Connected Devices Unlike in the IT world, mobile subscribers are not aware of the security threat coming from malware. They are often interested in getting a nice application for free and even google for “free apps“, getting access to more than 500 app stores for Androids, for example – with the probability of infection being up to 63%! They are unaware that cybercriminals can inject malware such as trojans on legitimate apps. When a subscriber faces bill shock or malware consequences, the target blamed is the operator. He or she will call customer care, spending hours discussing and not easily accepting that they share the blame. The subscriber will be disappointed with the operator and spread the message, leading to brand erosion. The operator will also have useless traffic and threats to its network caused by the malware. So malware is a clear threat to operators – but it also creates opportunities. According to our Acquisition and Retention Study 2013, security was one of the top priorities (#3) for new services. Also services such as m-commerce and m-health require security, so securing the network and end users is a platform for new business. out perform malicious activities. Operators are in a unique position to secure “Things” and end-users to differentiate in the market

30 NetGuard Endpoint Security (NES) detects MIRAI BotMonitor the network and detect malicious traffic NES detects the scanning and brute force login attempts, NES identifies the bots, NES detects the command & control sites and build an IP black list to block communication Password hacking attempts into IoT devices NetGuard Endpoint Security …helps service provider to prevent IoT devices in their network from participating in the attacks Observed and investigated by Nokia Threat Intelligence Lab Nokia NetGuard Endpoint Security is embedded in the service provider network where it continuously monitors the network and detects malicious traffic coming from devices. While some malware can evade client-based anti-virus protection, it cannot modify the network communication patterns that NetGuard Endpoint Security monitors. The solution analyzes all infections and their impact on customers and the network to enable the right countermeasures within the shortest possible time. The NetGuard Endpoint Security system allows the carrier to detect the devices infected with Mirai and Bashlite and identify the C&C sites. The malware is memory resident, so rebooting the device removes the infection. The password should immediately be changed to prevent re-infection and internet accessible telnet disabled. In some cases a firmware upgrade is recommended. The carrier can also use the C&C blacklist to block access to known C&C sites, preventing the bots from receiving instructions to attack.

31 Leveraging existing devicesNokia Video Analytics application suite From Data Collection towards Data insight Turning existing and new cameras into sensors Differentiation Traffic video feeds are analyzed to derive patterns and measure abnormalities (density, direction, dwell) Machine learning is used to create insights : detect speeding vehicle, traffic patterns, causes of congestion Multi-modal analytics capabilities: currently we have video capability, but we plan to be capable of analyzing any other source of IoT data Optimized real processing and on the edge North Direction Motion 1 Low Velocity Dwell, Crowd 2 Trend envelop plot

32 Customer value from automatic anomaly detectionUse case examples Wrong Direction Detect forbidden walk path eg walking against traffic at airport security Detect car taking wrong turn Detect Panic at Airport or School Crowd Congregation Measure popular storefronts and billboards in shopping mall Detect traffic accidents Detect a fight at a school Speeding & Running Detect a speeding vehicle Detect single person running in a crowd Detect Crowd in Panic

33 Leverage devices Nokia purchase of Withings

34 Systems Integration expertise is key for IoTIntegration of IoT Platforms to OSS/BSS IoT Applications Design and deployment of CMP and AEP Legacy OSS/BSS Telematics Utilities Healthcare Automation Industrial Integration of IoT applications with Platform IoT Platform Connectivity Management Platform (CMP) Application Enablement Platform (AEP) CRM Integration of IoT Platforms to Core Network ERP Core and Radio Networks WCDMA LTE GSM WiFi Fixed SDM OSS Deployment and integration of Mobile Guard Security SIM Billing Build IoT Optimized Core IoT Gateway IoT Devices (Fixed & Mobile) Systems Integration is fundamental to ensuring smooth interworking between platforms, management, applications and connectivity layers. In an IoT world , all components of the IoT ecosystem will very rarely come from a single vendor. We provide multivendor expertise to ensure interoperability between different systems – some of these systems are existing within the operator’s current ecosystem (such as Core, or OSS/BSS). Therefore it is even more important to ensure that there are no outages on live systems while integrating them with IoT platforms. Some elements like SDM and Core need to be integrated with overlays to make them ready for IoT. Our security services are critical for the deployment of secure solutions that help fortify IoT platforms and ensure reliable IoT communications.

35 IoT Community & Ecosystemng Connect Program IoT Community & Ecosystem Completed Market Trials Connected Service Technician (NZ) Connected Bus Shelter (NZ) Market Trials in Progress 4K Streaming Video for Tourism (US) Healthcare for Remote Areas (Taiwan) Gigabit Smart Campus (Taiwan) The IoT Community of the ng Connect Program brings innovative companies together to collaborate and unleash the potential of the Internet of Things. Define Solution Concepts Collaborate on Prototypes Explore Business Models Showcase for Feedback Market Trial for Business Model Validation and Building Market Credibility

36 IoT Community and ng ConnectMembers The IoT Community and ng Connect Program members span a wide range of industries and markets, and include innovators in infrastructure, devices, applications, content, and vertical markets Includes customers, partners, government agencies, and universities 250+ ng Connect members 30+ IoT Community members at launch For a complete listing of members, go to or

37 PUBLIC SPACES & MOVEMENT SOCIAL INFRASTRUCTURENokia use cases cover a broad range of verticals PUBLIC SPACES & MOVEMENT SOCIAL INFRASTRUCTURE Smart Energy / Metering Water Management / Metering Smart Public Spaces Waste Management Smart Lighting Tourism/ VR/ Advertising Smart Parking SENSORS CONNECTIVITY CONTROLLERS Smart Buildings & Fixed Assets Traffic Mgmt / Tolls Video Monitoring Information Actions Secure Management & Operations Connected Vehicles & Autonomous Driving e-Government & Public Services Public Transport & Fleet Mgmt Public Safety STORAGE & ANALYTICS

38 Connected mobility makes driving saferCross industry Nokia Mobile Edge Computing in Deutsche Telekom‘s live LTE network working with Continental and Fraunhofer Use cases Cooperative overtaking assistant Electronic brake light Benefits Robust 10-15ms application latency enables near real time communication improving road safety Field proven innovation In November 2015 connected cars were publicly showcased on the German A9 highway Partners Nokia and Deutsche Telekom demonstrated for the first time in the world in the operator’s live LTE network how Mobile Edge Computing can be used for car to car and also for car to infrastructure communications. Other partners were Fraunhofer for onboard units, and Continental for in-car applications. Less than 20 millisecond signal transport times were demonstrated live, which are vital for road safety applications. We demonstrated two different use cases: Emergency electronic brake lights and Cooperative Passing Assistant.

39 Unmanned Aerial Vehicles (UAVs) and UAV Traffic Management (UTM)Use cases Intelligent monitoring and surveillance Search and Rescue Study and exploration Transport and delivery, such as medical supplies in remote areas Relays, such as Wi-Fi hotspot in the sky LTE network technology with Mobile Edge Computing platform Drones equipped with LTE dongles, GPS and access modules for telemetry data Computing and processing components for monitoring airspace, viewing a drone’s flight path and telemetry data Unmanned aerial vehicle traffic management technology helps unlock the multifold possibilities of drones There are various use cases and business opportunities for drones which encompass delivering emergency services in healthcare and faster deliveries in logistics and many more. Nokia has demonstrated a traffic management tool for operators and authorities so they can ensure safe operation of drones as part of the development of smart cities. Nokia’s Unmanned Aerial Vehicle Traffic Management UTM technology helps unlock the multifold possibilities of drones as it ensures their safe and secure operation across various industry sectors. Nokia’s showcase covers: LTE network technology with Mobile Edge Computing platform Drones equipped with LTE dongles, GPS and access modules for telemetry data Computing and processing components for monitoring airspace, viewing a drone’s flight path and telemetry data

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41 Secure Remote Management of Connected Car DevicesOVERVIEW USE CASE INFORMATION THE CHALLENGE Drivers consume media in new and connected ways Several connected subsystems need updating Business models that can secure Total Cost of Ownership (TCO) need maintaining THE SOLUTION IMPACT Platform Integrate with Verizon Telematics IT environments and Mercedes Benz in-vehicle systems Provide OTA software updates and diagnostics Secure and standards-based (Open Mobile Alliance) platform THE RESULT Drivers and passengers access services and applications they want and need New business models and revenue streams are created Direct channel to customers strengthens brand relations Multi-endpoint solution OTA Secure software updates Diagnostic capabilities Manage head unit software (firmware updates, security policies, connectivity) Manage vehicle diagnostics scripts Vehicle Management CRM Wireless Internet IOT Platform (IMPACT) WEB SERVICE INTERFACE OEM BACK END Scalable Management Solution: Rule-based customized automation manager for work flow Manages Software parts inventory Device GUI for customized device handling CLIENT INTERFACE

42 FOTA campaigns for Connected CAROVERVIEW USE CASE INFORMATION THE CUSTOMER Continental, a major SI in Automotive serving Audi, VW, BMW, Mercedes, Tesla USE CASE FOTA campaigns for Connected Cars worldwide PRODUCTS Nokia Device Management TECHNOLOGY OMA-DM FUMO SCOMO FACTS In 2015 security breaches, for example, BWM and Jeep impacted millions of cars Tesla did 29 SW upgrades over the air to Model S in 32 months Continental Device x, Firmware y Target Device Groups, Target Time Window Interoperability Nokia DM SaaS FOTA Campaign Device Certification and Verification (incl OEM self verification) Turnkey cloud hosted SaaS Bulk field campaigns for targeted devices Clean up sweeps Device Knowledge Base Device dataBase Reports Pass, Coverage Continental

43 Agenda The IoT Market IoT Components Key Elements of Nokia’s OfferSummary

44 The Internet of Things has a transformational impact on all industries, re-shaping business models, value chains, and entire industry configurations Verticals Domains 1 2 3 5 4 6 7 8 9 Digital Health IT Public Safety Patient care Preventive health Law enforcement, military Surveillance, tracking Connected hospitals, health workers Emergency management Connected trains Connected road vehicles Connected planes, ships Mobility Smart Homes Retail Services Smart lighting, temperature Smart consumer, white goods Smart music, video Smart vending Smart stores Smart payment IT equipment IT networks Office equipment Industries Smart buildings Smart production, agriculture Smart Cities Utilities Water and waste Smart grid Traffic, parking, tolls Infrastructure, facilities Smart virtual reality, advertising Tourism,

45 Nokia’s IoT Strategy Focus verticals ReferencesConnected Safety Health  Automotive Utilities Cities Global presence and capability Nokia applications (ex: video analytics) Third Party applications Ecosystem for applications IoT discovery and consulting support Device and medium-agnostic platform Focus verticals References  raised USD 350 million investment fund for investments in Internet of Things  Connect startups and performs market trials Ecosystem & investments Connectivity layer (CMP) Data Collection & processing IoT Platform (IMPACT) Management Plane (CDP) Security ADEP Unify IoT platforms of several verticals Integrate Northbound and southbound with existing assets and ecosystem Deliver rich API for big data and actions Maximize security Maintain and prime partners Horizontal platform Multi-technologies NB-IoT (Rel. 13) eMTC (LTE-M) EC-GSM Licensed Current focus Non licensed

46 Why Nokia IoT connectivity –Standardized solutions with key differentiators like MEC and security IoT platforms - Pretested and integrated into Nokia IoT solutions IoT Applications – Technical and market validation with partner ecosystem Now is time to act – Nokia helps operators and enterprises tap new business opportunities in the rapidly developing IoT market.

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